Under what condition can the Company assign the Fat Shack agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that FSI maintains a staff to manage and operate the FAT SHACK system and that staff members can change from time to time. Franchisee represents that it has not signed this Agreement in reliance on any shareholder, member, manager, director, officer, or employee remaining with FSI in that capacity. FSI may change its ownership or form and/or assign this Agreement and any other agreement without restriction. This Agreement is fully transferable by FSI and shall inure to the benefit of FSI's successors and assigns. After FSI's transfer of this Agreement to a third party who expressly assumes FSI's obligations under this Agreement, FSI will no longer have any performance or other obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack Inc. (FSI) has the right to transfer the Franchise Agreement without any restrictions. This means Fat Shack can change its ownership, form, or assign the agreement to another party without needing the franchisee's consent.
This transferability extends to any other agreements related to the franchise. The document clarifies that franchisees cannot claim they signed the agreement based on the expectation that any specific shareholder, member, manager, director, officer, or employee would remain with FSI. Changes in Fat Shack's staff or ownership do not affect the validity or enforceability of the Franchise Agreement.
After Fat Shack transfers the agreement to a third party who explicitly takes on Fat Shack's obligations, Fat Shack is released from any further responsibilities or performance requirements under the agreement. The agreement is fully transferable by FSI and will benefit FSI's successors and assigns.